Kwara Assembly approves conversion of LG debts to bailout loans

Kwara State House of Assembly has granted approval to all the 16 local government areas in the state to convert their outstanding salaries, pension and gratuity amounting to the sum of N5, 017, 844,699.62 into bailout loan.
The approval of the legislature became imperative to further enable the third tier system of government in the state benefit under the bailout arrangement of the Federal Government.
This approval followed Governor Abdulfatah Ahmed’s message by the Speaker Dr. Ali Ahmad at the floor of the House yesterday.
The Speaker warned that the bailout loan should be strictly used for the intended purpose saying that the House would not condone diversion of the loan for any developmental project.
He also assured that relevant Committees of the House would monitor its implementation to ensure strict compliance.
The Leader of the House Hon. Hassan Oyeleke had while leading other members in debate, said the request was necessitated due to the inability of councils in the state to pay outstanding salaries, pension and gratuity stressing that the loan, repayable within 20 years, had a single digit of 9 percent interest rate.
Nigerian Pilot checks revealed that‎ Governor Ahmed had in his message said debt profile of all States and Local Governments especially on salaries, pension and gratuity, had been submitted to the Federal Government, stressing that the approval of the House was prerequisite to accessing the loan at the Central Bank of Nigeria.